CBZ profit after tax clocks $27.8m

ZIMBABWE'S largest financial group, CBZ Holdings posted a 16.8 percent growth in profit after tax to $27.8 million in the full year ended December 31, 2017 compared to $23.8 million achieved in 2016.

The increase in profit after tax was largely driven by an improvement in non-interest income.

According to the institution's financial results for the period under review, total income improved to $175 million compared to $159 million as at December 31, 2016.

The group's financial results also indicate that underwriting income contributed 4.6 percent while net interests income and non-interest income contributions were 43.2 percent and 52.2 percent respectively.

CBZ Holdings' total deposits also improved by 4.2 percent to $1.85 billion from $1.78 billion in the prior year. Advances fell by 6.5 percent to $941.4 million on the back of cautious lending with net interests income contributing 52.2 percent.

Total assets increased by five percent to $2.2 billion from $2.1 billion in the previous year. On the outlook, CBZ Holdings chairman Mr Noah Matimba commended the 2018 national budget and monetary policy statement for their bold position on creation of an open environment for business.

"The benefits arising from the open environment are likely to remain subdued in the short to medium term due to foreign currency shortages, inflationary pressures and slow uptake to the call for new investment driven by the re-engagement process with the international community.

"The company will in the short to medium term place emphasis on productivity enhancements while exploring opportunities for growth in its various business value streams," he said.

Mr Matimba said in line with the group's dividend growth policy and considering the need for prudent capitalisation and liquidity management, the board has proposed the declaration of a final dividend of $1.8 million.

"Having declared an interim dividend of $1.8 million, this translates to an annual dividend of $3.5, a 10 percent growth from the prior year," he said. - online